According to the minutes, the Monetary Policy Board saw “significant uncertainties” on the economic outlook. It also said it saw scenarios where interest rates could eventually rise, or fall. Additionally, it said the probabilities around these scenarios were more evenly balanced than before.

Overnight, RBA Chief send the AUD lower with his, more than expected, dovish tone. That was quite surprising, especially that after the statement shown yesterday, AUD got stronger. For us, it is important because AUD dragged NZD lower and we had a very interesting position on the EURNZD.

USDJPY’s pullback from 109.10-20 is less likely to signal the pair’s weakness unless a sustained drop beneath three-week-old upward slanting trend-line, at 108.40 now, takes place on the four-hour chart. If the pair slip under the 108.40, the 107.70, the 107.00 and the 106.70 support-levels may gain sellers’ attention. Meanwhile, clear break of 109.20 enables the pair to aim for the 109.50 and the 110.00 resistances. In case prices manage to extend its up-moves past-110.00, the 110.25-30 seems crucial to watch as it holds the gate for the pair’s rally to 110. ...

The euro dropped to session lows against the U.S. dollar on Tuesday, after European Central Bank President Mario Draghi said recent economic developments have been weaker than expected. In a speech addressing the European Parliament, Draghi also said that uncertainties and global factors remain of great importance and that further significant monetary stimulus was needed. The euro in response fell to its weakest level of the day, briefly diving below the psychologically-important $1.14 level and trading at its lowest level in more than a week. The shared currency last bought $1.1402, down from $1.1472 late Monday in New York.

Today, in the EU markets’ focus is the ECB meeting, which often causes strong volatility. Mario Draghi is expected to confirm that the Central Bank will finally stop buying assets by the end of this year.

Although USDJPY’s U-turn from 100-day SMA & support-line of short-term symmetrical triangle helped it cross 50-day SMA, the triangle-resistance, at 114.00, could challenge the pair’s strength. Given the buyers’ ability to surpass 114.00 barrier on a daily closing basis, the 114.55 and the 115.00 might entertain them before pleasing with 61.8% FE level of 115.30. On the contrary, 50-day SMA level of 113.00 and the 112.55 can offer immediate supports to the pair ahead of highlighting 112.35-30 support-confluence for one more time. If at all prices slid beneath 112. ...

With Italy frequently dominating the headlines in the recent weeks, it’s a good idea to take a macro look at the Eurozone: its origins, some aspects of its structure, and what dangers it might face in the near future.

Repeated bounce off the two-month old ascending trend-line portrays the USDJPY’s strength but the pair needs to surpass 112.80-85 resistance-region in order to justify its capacity to conquer the 113.30 and the 113.55-60 levels to north. It should also be noted that the pair’s successful trading beyond 113.60 can escalate its recovery towards 114.05-10 and to the 114.55. Alternatively, pair’s dip below 112.00 support-line could take rest on 111.65-60, breaking which 111.00 & 110.70-65 may gain market attention. In case if sellers refrain to respect the 110. ...

Investing.com - The dollar rose to nine-week highs against a currency basket on Wednesday as the euro slumped on disappointing euro zone data while the pound was pressured lower amid persistent investor anxiety over Brexit.